Mercy Corps Field Finance Manual: Ensuring Financial Integrity in Humanitarian Action

The Mercy Corps Field Finance Manual (FFM) is a crucial document that serves as the cornerstone of financial management within the organization's field operations. It provides comprehensive guidance and standardized procedures to ensure accountability, transparency, and efficiency in the handling of funds across diverse and often challenging operating environments.

The primary purpose of the FFM is to safeguard Mercy Corps' resources and maintain donor trust. It achieves this by establishing a robust framework for all financial activities, from budgeting and cash management to procurement and reporting. The manual is designed to be user-friendly and adaptable to the specific context of each field office, recognizing the varying levels of infrastructure and capacity in different locations.

Key areas covered in the FFM include:

• Financial Policies and Procedures: The manual details Mercy Corps' overarching financial policies, including ethical standards, fraud prevention measures, and internal control mechanisms. It provides step-by-step procedures for various financial transactions, ensuring consistency and compliance across all field offices.
• Cash Management: Given the reliance on cash transactions in many field settings, the FFM places a strong emphasis on secure cash handling. It outlines procedures for cash receipting, disbursements, petty cash management, and bank reconciliations. Minimum cash holding requirements and segregation of duties are also addressed to mitigate risks.
• Procurement: The FFM provides detailed guidance on procurement processes, emphasizing fair competition, value for money, and compliance with donor regulations. It covers supplier selection, bidding procedures, contract management, and documentation requirements. Segregation of duties to prevent conflicts of interest is also a key aspect.
• Accounting and Reporting: The manual defines the accounting principles and reporting requirements that field offices must adhere to. It outlines the chart of accounts, journal entry procedures, and the format for financial reports. The FFM emphasizes the importance of accurate and timely reporting to facilitate informed decision-making.
• Budgeting and Forecasting: The FFM guides field teams in developing realistic budgets that align with program objectives. It covers the budgeting process, including forecasting methodologies, variance analysis, and budget revisions. Effective budgeting is essential for ensuring efficient resource allocation and program sustainability.
• Internal Controls: The FFM highlights the importance of internal controls in preventing and detecting errors, fraud, and other irregularities. It outlines various control mechanisms, such as segregation of duties, authorization limits, and regular reviews of financial transactions.

The FFM is not a static document. It is regularly updated and revised to reflect changes in best practices, donor requirements, and the evolving needs of Mercy Corps' programs. Training and capacity building are essential components of the FFM's implementation. Mercy Corps provides ongoing training to finance staff and program teams to ensure they understand and can effectively apply the principles and procedures outlined in the manual.

By adhering to the guidelines outlined in the Field Finance Manual, Mercy Corps strives to maintain the highest standards of financial integrity and accountability in its humanitarian work, ensuring that donor funds are used effectively and efficiently to achieve the organization's mission of alleviating suffering, poverty, and oppression.